News - Sunnyvale Apartment Complex Changes Ownership Amid Rising South Bay Rents

A significant real estate transaction has unfolded in Sunnyvale, where a large apartment complex at 870 and 874 East El Camino Real has exchanged ownership in a deal totaling $76.9 million. The acquisition was executed by a consortium linked to PGIM, a global management entity under Prudential Financial, and Bay Area's Interstate Equities Corp. The former owners, Singapore-based Mapletree, acquired the property in 2014 for $69.5 million, reflecting a significant appreciation amidst a vigorous local property market. This sale is notable due to its proximity in time and location to another major apartment deal just a few days earlier. On January 6, Mapletree also sold a Mountain View apartment complex, comprising 149 units, for $87 million to the same New Jersey and Bay Area buyer group, highlighting their ongoing investment strategy in South Bay's real estate landscape. The price per unit in the Sunnyvale deal, averaging $417,900, follows trends seen in other recent South Bay transactions, such as the Ascent apartment complex in South San Jose, which achieved a per-unit price of $496,500. Such figures underscore the area's dynamic real estate market, supported by a higher-than-average rise in local rents. Rising rental prices in the South Bay mirror robust property market performance, with the region experiencing a 3.4% increase in annual rents during 2025. This growth is commensurate with other high-performing metro areas in the country, placing it among the leaders in rental price increases nationwide, as per the CoStar Group's latest report. These transactions highlight ongoing investor confidence and regional economic vitality, even as they compete with national rental trends. Overall, the Sunnyvale transaction signifies a substantial affirmation of the strength and resilience of South Bay's apartment market, supported by strategic acquisitions by notable investment groups, and anticipation of continued growth in the region.